Representative Trey Caldwell described House Bill 2747 to the House Energy and Natural Resources Oversight Committee as a multi-year effort to address generation, transmission and reliability concerns in Oklahoma.

The measure would change how certain generation and transmission projects are reviewed and paid for, including provisions that (1) allow incumbent transmission owners to participate in an open request-for-proposals (RFP) process for new transmission, (2) permit early recovery of return and return on construction work in progress (CWIP) before commercial operation, (3) create accounting incentives to encourage natural-gas generation and refurbishment of existing thermal plants, and (4) alter the forum for some retail-related regulatory reviews so interveners can pursue issues at the Oklahoma Corporation Commission rather than at the federal level.

Why it matters: Proponents said the combination of accounting changes and procurement rules would lower capital costs for new natural-gas projects, which they expect would reduce upward pressure on retail electricity rates and improve reliability during high-demand events. "Anytime that we can lower the CapEx of generation assets, that is less money that's gonna be charged to the ratepayers of Oklahoma," Representative Trey Caldwell said during committee questions. He added the measure is intended to give "an advantage to the ratepayers" by reducing financing costs baked into project capital expenditures.

Committee discussion focused on consumer protections and the mechanics of the proposed incentives. Representative Deck asked whether limitations exist on types of on-site generation allowed; Caldwell replied the bill does not specify technology types but requires a component of natural-gas generation or capacity on eligible facilities. Representative Dolan and others pressed how the bill avoids creating direct subsidies; Caldwell described the changes as accounting and timing mechanisms rather than explicit subsidies.

On the question of consumer protections, Caldwell told the committee that if a project that had begun to collect early CWIP money failed to reach commercial operation, "every dollar of the ratepayer money will be refunded," and the Oklahoma Corporation Commission would oversee prudency and any refunds.

Action: The committee adopted a motion to report HB 2747 "do pass." The committee recorded a vote of 13 ayes and 2 nays, and the bill was reported out of committee.

Discussion versus decision: The committee's action was a formal committee recommendation (do pass) to the House. Several members asked substantive questions and sought clarifications (discussion). No floor amendments or final legislative text beyond the committee substitute were adopted at this meeting.

Next steps: HB 2747 moves to the full House for consideration; sponsors and stakeholders said they will continue to refine language, including consumer-protection and prudency provisions that the Oklahoma Corporation Commission would review if the bill becomes law.